Creating the Culture of Philanthropy Building Excellence in the Fundraising Enterprise F.I.A Sydney...

Creating the Culture of Philanthropy Building Excellence in the Fundraising Enterprise

F.I.ASydney AustraliaAugust 24, 2011

J.B. Michael Farrell FAHP www.philanthropycoach.ca

Twitter @[email protected]

www.philanthropycoach.ca

What is a “Culture of Philanthropy”

an atmosphere, a gestalt, where every person in the organization understands that philanthropy is an essential part of the organization’s ability to advance its mission


A Culture of Philanthropy… a culture of building not begging

The Culture of Philanthropy is a culture of Inspiration

Volunteers and staff are passionately committed to expanding the mission

Donors are given the opportunity to join you in your quest.

It is a celebration of giving and the nobility of sharing.

Donors more than thanked… donors know they are relevant …their gifts work!

It is focused on the mission not the money!


What is…Excellence in the Fundraising Enterprise

Advancing the missionMeeting the expectations of our

stakeholdersEstablishing and achieving goalsSignificant growth


Transformational Fundraising is Personal Journey

Re-ignite our passionFocus on who we really serveEmpower ourselves be bold/audaciousIf we are going to get good…to be

excellent at fundraising we have to revisit why we got into this in the first place


Excellence sounds easy

“Fundraising is always about the case. You have to translate that into ‘the language of philanthropy” and then deploy your energy and resources to tell your story where you have the best potential to generate support.”


The Algorithm of Fundraising Success

Resources + Energy Applied in areas of greatest potential

= Success


The Business Plan

Cause…Virtually 100% of the organizations that experience significant growth do so through major gifts

Effect… “In 2012 we are going concentrate on gifts greater than $1,000…$5,000…$100,000”


Answer this question to begin the journey to fundraising excellence

…Ms. Faloney has been giving your organization $1000 a year

…And Ms. Faloney has significant capacity.

…What would compel Ms. Faloney to make a $25,000 gift in 2012?


What do you think Ms. Faloney knows about you?

What was in the last thank you letter you sent?

What was the feature of your last newsletter or correspondence?

What is on you walls?What is on your website?What kind of conversations have you

had with her?


What Messages are you sending

Celebration of collectionsCelebration of eventsStories feature who and how much

rather than why.In the recognition programThe Rotary Conundrum


Fundraising in a “Culture of Philanthropy”

No one “owes” you a giftNo one is “obligated” to make a giftYou earn gifts with good worksYou inspire major gifts with powerful

ideas


The Power of Ideas

Is your case a big ideaDiscussing philanthropic dreamsThe $600,000,000 dollar lessonWhat can you do?


Tapping the Philanthropic Spirit

Dream big…what would it cost to rename your institution, your service, or an endowment fund?

Your recognition program…Be careful what you celebrate

Talk about big gifts until it becomes part of your culture


We need to replace our playground. The school board ordered us to knock it down!

We can give the community it’s first handicap accessible playground.

The Power of Big Ideas


Our Mission and “The Paradox of Need”

Need can be paralyzingNeeds are universalSolutions set your organization apart

from the othersYou have no needs…people have needsWE are builders not beggers


Planning Assumptions for a Fundraising Board

We are Volunteer Led Staff DrivenWe are Mission Focused We are committed to Aggressive GrowthWe commit to Activity Based metricsChange is constant


Mission Vision Directions Strategy Implement

Strengths and weaknesses

Environmental Assesment

Impediments

Issues

Timing

Costs

Assignments

Communications

Manage

Volunteer Led Staff Driven

EVALUATE

The Board Planning Continuum

Volunteer Led Staff Driven


The Board-Staff Partnership

Fundraising, in fact, all not for profit enterprise, is at its best when skilled and knowledgeable staff leaders partner with passionate, dedicated and well informed volunteers.


Not this sort of partnership

Board MemberFinance Chair

Board Member

Board Member

Communications Chair

Board Member

Board Member

Board Chair

Board Member

Board Member

Board Chair Elect

Ralph…Executive Director


Fundraising Leadership … a Three Legged Stool

Fundraising Leadership

C

E

O

C

D

O

BOARD


Charity/CEO Leadership

Can be top volunteer by virtue of position.

Commit the time for calls as required.Make a meaningful giftArticulate the vision…serve as

spokespersonMake the Major Gifts a corporate priority Assist with identification/recruitment of

leadership


Expanding the Capacity…The Culture of Philanthropy

All staff are familiar with the caseBoard and volunteer family awareStories and legends…Enhanced and

active celebration of major donors and heroic care givers…Larger than life.

Donor self identification…


The Boards Dual Identity

Fundraising as a side bar…iffy at bestFinding focus…Development CommitteeParallel OrganizationsSuccessful fundraising won't happen on

the margins. It must be a part of the mission.


The Fundraising Board … 3 Jobs

1. Raise Money

2. Steward the money

3. Award it judiciously

#2. And #3. are just concepts if # 1 isn’t successful!


The Board Leadership… How do you add value?

This not about governanceFundraising is not very

complicated!Change starts at recruiting


The Board Leadership… How do you add value?

Make a meaningful gift Champion the Big Idea…Set the case

vision and the goalAssist with prospect identification,

rating, cultivation and solicitationPrudently manage the funds raisedInsure resources are in place to

advance the mission


The Budget, Resources and Commitment to Change

Budget is the price tag of the Vision Is always presented in the context of five years

of growth A chance to educate volunteers about the

business of fundraising Activity based budgets X calls = Y gifts how many people does it take

to manage X calls Board will make better choices when budget

reductions are done in the context of the vision


Development Pyramid

Universe

First gift

Repeat Gift

Major Gift

Legacy


Resource Deployment Pyramid

Universe

First gift

Repeat Gift

Major Gift

Legacy

ResourceAllocation


Engaging the Board

Prospect review is standing agenda item “Cultivation calls” Bi weekly lists of prospects for consideration Scorecard kept on participation Scorecard becomes part of board report


Donor Conversations

Donor Audit toolYour Mission…your best ideaWhat has changedWhat your agency is doing And what opportunities there are for the

donorMeasure the interest

So Lets talk to Ms. Faloney

Who is the best person to have the conversation

Explain what we are doing and whyGauge her interest in our mission Give her context for the “think about”

numberPrepare a solicitation call that would

allow her to make a difference



Building Donor Relationships …Donors are your best prospects

Donors committed to the mission not a single person or a shopping list

Donors must believe that your leadership is competent

Confidence that your institution will deliver the goods.

Context is right for a large gift


Metrics for a Major Gift Operation

Case written, board approved and tested # of qualified calls for gifts < $25,000 % of calls that are successful Number of Major Gift prospects identified Number of volunteer solicitors assigned Number of Volunteer calls completed Increase in the number of major gifts secured Number of legacy gifts committed

An Activity Based Planning Model allows for some universal measures


Tax Data SurveysTax Data Surveys

23 % of all Canadians claim gifts…Avg. $ 915

33% of Australians declare gifts …$450.

78% of all Canadians give to charity Avg. $259


Philanthropic Support by Population

Health-Education-Religion-Kids

Diseases

Social Programs

Environment

Culture Sport Art

Chart is for discussion only

Animals

Staying Mission Focused

These people don’t tell us we are dreamin’…they raise some issue

We run off to fix a problem that may not exist


In a perfect world we wouldn’t need fundraisers…we know we are in tough

we are fundraisers We did not make it to the top of the feeding

chain by giving our stuff away We may have been communal but it was quid

pro quo. There may be some disturbing stuff lurking in the

deep end of our gene pool Our appeal has to be stronger than the

prospect’s instinct to keep his hard earned money


Giving is a Learned Behavior

Giving runs in families…rich and poorCaring and empathy seem to be learned

behaviors… we can be teachersDonor recognition celebrating gifts is a

great way to teach.Our appeals teachMostly we teach by our example



We respectfully ask individuals to make gifts commiserate with their station in life.

The Good Samaritan

Fundraising is Not Egalitarian. Who you ask and how you ask will define success


Effective Gift CallsFundraising is a Contact Sport

Face to face call made by a by a well prepared, and passionate peer in the company of an expert witness.


Ipsos Reid poll for …Scotia Private Client Group

97 per cent said their philanthropic decisions are motivated by the charity's cause

94 per cent said they are driven by personal values

54 per cent said the timing of the charitable request is the deciding factor.

Sample has minimum $250,000 in investments


Volunteer

How did you get recruited?Was your recruitment mission based?What have you been asked to do?Why did you say yes?Did you come here to keep an eye on

the finances or to make difference?


Staff

Most of us landed here because we needed a job and this looked good enough…but is it still just a job?

What made you think that you could be successful?

What is the most memorable moment of your time with your agency?


Passion in Our Workplace

The work that we do is critically important and the only constraint on what we can do is resources

The work is noble…we are fiercely proud of what we do

difficult economic times…we are needed now more than ever!


The Real Culture of Philanthropy

Is in our heartsIn our belief that generous people of

good will can make a profound difference in this world

In our willingness to do something to make the world a better place

You came here this afternoon when God knows you could have been anywhere else…for all that you do…thank you!

Creating the Culture of Philanthropy Building Excellence in the Fundraising Enterprise F.I.A Sydney...

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